Kimbell Royalty (NYSE:KRP) Receives Average Recommendation of “Hold” from Analysts

Shares of Kimbell Royalty (NYSE:KRP) have been given a consensus recommendation of “Hold” by the five research firms that are currently covering the firm, Marketbeat Ratings reports. Three equities research analysts have rated the stock with a hold recommendation and two have issued a buy recommendation on the company. The average twelve-month price target among analysts that have issued ratings on the stock in the last year is $17.3333.

A number of brokerages have weighed in on KRP. Citigroup upped their price target on shares of Kimbell Royalty from $17.00 to $19.00 and gave the company a “buy” rating in a report on Tuesday, March 31st. Zacks Research downgraded shares of Kimbell Royalty from a “strong-buy” rating to a “hold” rating in a report on Thursday, January 22nd. Mizuho cut their price target on shares of Kimbell Royalty from $17.00 to $16.00 and set a “neutral” rating for the company in a report on Friday, February 27th. Wall Street Zen downgraded shares of Kimbell Royalty from a “buy” rating to a “hold” rating in a report on Saturday, March 7th. Finally, KeyCorp raised shares of Kimbell Royalty from a “sector weight” rating to an “overweight” rating and set a $17.00 price target for the company in a report on Thursday, April 2nd.

Kimbell Royalty Price Performance

Shares of NYSE KRP opened at $15.62 on Tuesday. Kimbell Royalty has a twelve month low of $11.31 and a twelve month high of $15.63. The company has a current ratio of 8.64, a quick ratio of 8.64 and a debt-to-equity ratio of 0.72. The company has a market capitalization of $1.68 billion, a price-to-earnings ratio of 25.19, a PEG ratio of 2.66 and a beta of 0.29. The firm has a 50-day moving average of $14.53 and a two-hundred day moving average of $13.41.

Kimbell Royalty (NYSE:KRP) last issued its quarterly earnings results on Thursday, February 26th. The energy company reported $0.21 earnings per share for the quarter, beating analysts’ consensus estimates of $0.14 by $0.07. Kimbell Royalty had a net margin of 26.43% and a return on equity of 13.73%. The company had revenue of $82.45 million during the quarter, compared to the consensus estimate of $76.78 million. During the same period in the prior year, the company earned ($0.48) EPS. Kimbell Royalty’s revenue was up 23.7% on a year-over-year basis. As a group, analysts expect that Kimbell Royalty will post 1 earnings per share for the current fiscal year.

Kimbell Royalty Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, March 25th. Shareholders of record on Wednesday, March 18th were issued a dividend of $0.37 per share. This represents a $1.48 annualized dividend and a yield of 9.5%. The ex-dividend date was Wednesday, March 18th. This is a boost from Kimbell Royalty’s previous quarterly dividend of $0.35. Kimbell Royalty’s dividend payout ratio is presently 238.71%.

Kimbell Royalty announced that its board has initiated a stock buyback program on Monday, March 9th that authorizes the company to buyback $100.00 million in outstanding shares. This buyback authorization authorizes the energy company to buy up to 6.4% of its stock through open market purchases. Stock buyback programs are often an indication that the company’s management believes its shares are undervalued.

Insider Transactions at Kimbell Royalty

In other Kimbell Royalty news, insider Blayne Rhynsburger sold 6,609 shares of the business’s stock in a transaction dated Monday, March 23rd. The stock was sold at an average price of $14.48, for a total transaction of $95,698.32. Following the sale, the insider owned 75,163 shares in the company, valued at approximately $1,088,360.24. The trade was a 8.08% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 5.60% of the company’s stock.

Hedge Funds Weigh In On Kimbell Royalty

Several institutional investors and hedge funds have recently added to or reduced their stakes in KRP. Royal Bank of Canada lifted its holdings in shares of Kimbell Royalty by 32.6% in the first quarter. Royal Bank of Canada now owns 371,582 shares of the energy company’s stock valued at $5,202,000 after purchasing an additional 91,263 shares in the last quarter. Jane Street Group LLC purchased a new stake in shares of Kimbell Royalty in the first quarter valued at $297,000. Legal & General Group Plc lifted its holdings in shares of Kimbell Royalty by 17.2% in the second quarter. Legal & General Group Plc now owns 67,890 shares of the energy company’s stock valued at $948,000 after purchasing an additional 9,987 shares in the last quarter. First Trust Advisors LP lifted its holdings in shares of Kimbell Royalty by 8.6% in the second quarter. First Trust Advisors LP now owns 464,829 shares of the energy company’s stock valued at $6,489,000 after purchasing an additional 36,803 shares in the last quarter. Finally, Jump Financial LLC purchased a new stake in shares of Kimbell Royalty in the second quarter valued at $1,220,000. 25.78% of the stock is currently owned by hedge funds and other institutional investors.

About Kimbell Royalty

Kimbell Royalty Partners LP (NYSE: KRP) is a mineral and royalty company focused on acquiring and managing oil and natural gas royalty interests in the United States. As a master limited partnership, Kimbell Royalty generates fee-like revenues by collecting royalties and overriding royalty interests on production volumes, without directly bearing the capital or operating costs of drilling and completion activities. The partnership’s business model emphasizes steady cash flows and limited downside exposure to commodity price fluctuations.

The company’s asset portfolio spans multiple onshore basins, with a core concentration in Texas and New Mexico.